Compound Interest Calculator – Grow your wealth with compound interest
Fast & Easy Compound Interest Calculator
With our compound interest calculator, you can calculate in seconds how your wealth may develop over time. Make use of the compound interest effect – that is, earning interest on already accrued interest. The earlier and longer you invest, the more powerful the growth. This calculator shows you, based on a few inputs, what amount you can expect in the future and how much of that is due to compound interest.
Start Calculating Your Returns
Future Value Revealed
The Compound Interest Effect: Your Most Powerful Ally
Compound interest is one of the most powerful mechanisms in long-term saving and investing. It means that not only your initial capital earns interest, but each interest payment credited also continues working for you and generates new interest. This snowball effect leads to exponential growth of your capital.
A simple example: If you invest CHF 10’000.- at 5 %, you earn CHF 500.- interest in the first year. In the second year, you earn interest not just on the original CHF 10’000.-, but on CHF 10’500.-. Your capital grows to CHF 11’025.- without any additional contributions. Over many years, this effect compounds powerfully.
Simple and Fast: Our Compound Interest Calculator
This online calculator is tailored specifically for investors in Switzerland: All amounts are displayed in CHF, and the number format follows local conventions (e.g., CHF 10’000.-). With just a few clicks, you can test different scenarios – ideal for retirement planning, saving for children’s education, or any other savings goal.
Simply enter your starting capital, an optional monthly savings contribution, the investment duration, and an expected interest rate. Our calculator will provide the following figures:
- The final capital at the end of the term (your total wealth)
- The total amount deposited (initial capital plus monthly contributions, if any)
- The total interest earned over the years
By default, we assume interest is credited monthly and reinvested each time (standard for many savings products; see below for explanation). This unleashes the full power of compound interest. If you were to withdraw interest regularly instead, you would only earn linear, simple interest – missing out on exponential growth.
How to Use the Compound Interest Calculator Properly
This calculator is based on four essential input values that help you simulate your individual savings strategy:
Initial capital
The amount you invest at the beginning. This could be existing savings or a one-time deposit into an investment account (e.g., CHF 5’000.-, CHF 50’000.- etc.).
Example: Investing CHF 2’000.- at 6 % p.a. at your child’s birth and leaving it untouched for 18 years grows the money to a surprisingly high amount. Time and a good interest rate work for you.
Monthly Savings Rate
A regular monthly contribution in addition to your initial capital. Even small amounts (CHF 50–200/month) add up significantly over time, especially thanks to compound interest.
Tip: Saving CHF 100.- monthly over decades results in substantial wealth – especially when combined with a solid interest rate and a long investment horizon. In long terms, compound interest contributes more to your final capital than your contributions themselves.
Saving Duration (Years)
The time over which you save or stay invested. The longer you stay invested, the more time compound interest has to work. Especially in the later years, the curve usually steepens.
Example: In 10 years, CHF 10’000.- at 5 % becomes about CHF 16’300.-. In 30 years, it grows to around CHF 43’000.-, and in 40 years, nearly CHF 70’000.- – without further contributions. Time is your ally.
Annual Interest Rate (% p.a.)
Here you define the average annual return on your capital. Even small differences have a big impact over the long run.
Example: 5 % vs. 6 % p.a. may not seem dramatic – but over 30 years, a 1 % difference equals tens of thousands of francs. The interest rate is often the most powerful lever: Even saving CHF 100.- more per month has less effect than earning 1 % more annually. Of course, higher returns involve risk – but over time, choosing the best possible investment helps optimize the average.
Compounding Frequency
You can choose how often interest is compounded – monthly, quarterly, or yearly. The more frequently interest is credited and reinvested, the stronger the compound effect. Monthly compounding usually results in the highest final capital, followed by quarterly and annual compounding. Test different scenarios to see how much the frequency impacts your outcome.
Compound Interest Formula
For those who want to understand the math: Compound interest can be calculated using the following formula:
Kn = K0 · (1 + p/100)n
“K sub n” is the final capital, “K zero” is the initial capital, p is the annual interest rate in percent, and n is the number of years. This formula assumes annual compounding. Our calculator includes monthly compounding, which slightly increases the outcome.
Example: Starting capital CHF 10’000.-, interest rate 5 %, duration 10 years.
Formula: 10’000 · (1 + 5/100)^10 = 10’000 · (1.05)^10 ≈ CHF 16’289.-
The interest (~CHF 6’289) is added yearly. With monthly compounding, the result would be slightly higher (~CHF 16’470.-). Our calculator automatically accounts for this.
Who Should Use the Compound Interest Calculator?
Anyone who wants to build long-term wealth! Especially:
- Individuals saving for retirement (e.g., via ETFs, pillar 3a, etc.)
- Parents saving for children’s education
- Savers with specific goals (home purchase, world travel, emergency fund)
- Young people starting early to take advantage of long investment horizons
- Curious users testing different strategies (lump sum vs. monthly, varying interest rates)
In short: Our compound interest calculator gives you a realistic view of how your money can grow over time – and how different results can be depending on changes in amount, rate, duration, or interest.
Frequently Asked Questions (FAQ)
Compound interest means that not only your initial capital earns interest, but all previously credited interest also earns interest. This creates “interest on interest”. Over long periods, this leads to exponential wealth growth.
By reinvesting the earned interest and starting to save as early as possible. Regular contributions (e.g., monthly) and a long investment horizon amplify the effect. Discipline is key: Let your money work and avoid withdrawing gains early, so the snowball keeps rolling.
“% p.a.” stands for “percent per annum” (per year). For example, 5 % p.a. means your capital grows by 5 % in one year, assuming it’s invested the entire year and interest is not withdrawn.
That depends on the financial product. Many banks pay interest annually (as of Dec 31), while some savings accounts or investment products pay quarterly or monthly. In our calculator, you can select the compounding frequency to match your situation. More frequent compounding results in a slightly higher final capital.
That depends on the interest rate. At 5 % p.a., CHF 10’000 earns CHF 500.- in one year. At 3 %, it’s CHF 300.-, and at 1 %, just CHF 100.-. Our calculator shows not only annual interest, but the full development over time including compound effects.
Our calculator works with idealized assumptions: constant interest rate, fixed monthly contributions, and regular compounding (monthly, quarterly, or yearly). The results may be slightly higher than those with annual-only compounding. In real life, rates may fluctuate, and taxes may apply – but the underlying growth pattern remains valid.
Yes, the calculator is designed specifically for Swiss users. Amounts are shown in Swiss francs (CHF), with number formatting according to Swiss standards (e.g., CHF 10’000.-). We also follow typical Swiss conventions for interest calculations, such as the 30/360 day count method.
With the same interest rate, monthly compounding leads to the highest final capital, followed by quarterly and annual. The more frequently interest is added and reinvested, the greater the compound effect. Try out different intervals in the calculator to see the impact.
Then compound interest no longer applies. Your wealth grows only linearly through simple interest. Reinvesting all earnings leads to exponential effects – that is the key to strong long-term growth.
Because different financial products pay interest at different intervals. To make realistic comparisons, our calculator allows you to select monthly, quarterly, or yearly compounding.
Conclusion
Whether you’re just starting to save or are already an experienced investor – use our compound interest calculator to explore different scenarios. You’ll quickly see how small changes (a few more years of investing, slightly higher savings, or a better rate) can make a huge difference. It helps you understand what it takes to reach your financial goals.
Take the first step: Start calculating now and experience the power of compound interest!